Palace Project is showing unavailable items in search results for libraries that are in it's scope

[SteveEOLI]

The newly added Palace Project in Aspen, when scoped to just a specific library, is having items that are not available to that library continue to show with a "The library does not own any copies of this title" message. When scoping collections, there is an option to use "Has Circulations" (If I'm understanding the setting correctly.) that should limit the item display on the scoped library to just those that are circulatable or holdable, and that does not appear to be limiting what items show in search for the library.

In brief, items from Palace Project that are not available to a specific library that is scoped to Palace Project should not display in the search results.